The Supreme Court’s decision regarding loans under the Katseli Law was announced today, Thursday (04/06). Specifically, it was decided that interest will now be calculated on the overdue monthly installment rather than on the total remaining principal amount.
The full text of the Plenum’s decision will be posted within the day on the Supreme Court’s website.
Katseli Law: The Supreme Court Plenum’s decision
The Supreme Court Plenum, with a strong majority, sided with Katseli Law borrowers regarding interest calculation, despite opposition from funds that sought to have interest calculated on the entire outstanding amount, something that significantly burdened borrowers. The case was discussed in the Supreme Court Plenum on 27.2.2025, following disagreement between Justice of the Peace courts.
Specifically, the full Plenum decided by a majority of 35 in favor and 12 against that the calculation of interest for borrowers who have been included under the Katseli Law should be calculated on their monthly installment and not on the total loan amount.
The Supreme Court justices’ decision affects approximately 350,000 borrowers and all funds operating in Greece.
It should be noted that Supreme Court Vice President Sotiris Plastiras, in his recommendation during the Plenum conference on the disputed issue, had sided with the borrowers. Specifically, he had recommended that the calculation of owed interest for non-performing loans should be calculated on their monthly installment and not on the total amount.
